Investment Rating - The report indicates a positive outlook for the commercial insurance industry, with most lines experiencing moderate to significant rate increases in Q4 [6][12]. Core Insights - Reliable information on pricing and profitability is crucial for companies to compare themselves to the marketplace, as highlighted by the WTW's U.S. commercial lines pricing and profitability survey (CLIPS) [12][18]. - The survey shows that loss ratios are developing favorably, with a notable improvement from 2022-2023 to 2023-2024 [9][10]. - The report emphasizes the importance of balancing price and retention in a competitive market, with participants benefiting from insights provided by CLIPS [20]. Summary by Sections - **Pricing Trends**: Most lines continued to see moderate to significant rate increases in Q4, indicating a strong pricing environment [6][12]. - **Loss Ratios**: The change in earned loss ratios shows a favorable trend, with a decrease in loss ratios from 2022-2023 to 2023-2024 [9][10]. - **Survey Methodology**: CLIPS collects data from participating companies each quarter, providing insights on estimated price changes and loss costs, which are crucial for industry analysis [15][17].

Investment Rating - The report indicates a positive outlook for the commercial insurance industry, with most lines experiencing moderate to significant rate increases in Q3 2024 [7]. Core Insights - Price monitoring is emphasized as crucial in the current economic climate, with a focus on how investment income impacts pricing and underwriting results [3][4]. - Loss ratios are reported to be developing favorably in 2024, with year-over-year changes showing a decrease in loss ratios from 2022-2023 to 2023-2024 [10][11]. Summary by Sections - **Pricing Trends**: The report highlights that various commercial lines continue to see rate increases, which is essential for maintaining profitability in a competitive market [7][25]. - **Loss Ratios**: There is a favorable development in loss ratios, indicating improved underwriting performance and profitability for insurers [10][11]. - **Market Comparison**: The report stresses the importance of reliable information for companies to compare their performance against the marketplace, utilizing WTW's CLIPS survey for data-driven insights [17][19].

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Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The 2024 Global Survey of Accounting Assumptions for Defined Benefit Plans reflects data from 1,100 companies across 47 countries, focusing on economic assumptions that influence pension costs [3][21] - Key economic assumptions include discount rates, inflation, expected long-term rates of return on plan assets, and mortality assumptions [4][6] Summary by Sections Economic Assumptions - In 2023, there was a global decline in both corporate and government bond yields, with government bond yields decreasing in 33 out of 42 countries [6] - The main stock markets showed resilience despite economic uncertainties, maintaining levels close to the end of 2022 [6] - Year-on-year changes in expected rates of return assumptions ranged from -28 basis points to +58 basis points [6] Discount Rates - Discount rates are primarily based on AA-rated bonds, with ASC 715 and IAS 19 providing different guidelines for their calculation [7] - The average discount rates for benefit obligations at the end of 2023 showed a reversal in the upward trend, except in Japan [8][10] Inflation Assumptions - Long-term price inflation assumptions influence salary increases, pension increases, and social security parameters [9] - Inflation rates have diminished overall, except in Japan and Switzerland, with the average inflation assumption for 2024 showing slight decreases compared to 2023 [11] Expected Rates of Return - The expected rate of return on assets reflects the long-term earnings expectation of pension fund assets, with minor changes in asset allocations compared to the previous year [12][14] - The average expected rates of return for 2024 show slight increases in several countries, with the United States maintaining a rate of 6.23% [16] Mortality Assumptions - The report includes data on life expectancy assumptions, with most countries showing life expectancies between 20 and 30 years [17] Projected Benefit Security Ratio - The projected benefit security ratio, which compares the market value of plan assets to projected benefit obligations, showed a decrease in most major economies due to lower discount rates [18][20]

Global Pension Finance Watch – Second Quarter 2024 Continued Increases over the Second Quarter Continued rises in global discount rates drove positive WTW Pension Index movements in most regions over the quarter. Discount rates increased in all countries other than Switzerland. All countries, with the exception of Brazil and the U.K., experienced positive asset returns during the quarter. While it is always the case that Global Pension Finance Watch captures results at the end of each quarter, we particular ...

Investment Rating - The report indicates a positive trend in the WTW Pension Index across most regions, with the exception of Switzerland, highlighting a generally favorable investment environment for pension funds [1][2]. Core Insights - The WTW Pension Index reflects the ratio of asset value to projected benefit obligations (PBO), showing a significant increase in discount rates across all countries except Switzerland, which positively impacts pension funding status [2][25]. - The report emphasizes the importance of monitoring pension funding status and financial indicators to inform key business decisions, especially in light of recent market volatility [1][4]. Summary by Sections Global Pension Financial Overview - The report reviews capital market performance and its impact on fixed-income pension plan funding, focusing on asset/liability outcomes across various countries including Brazil, Canada, Eurozone, Japan, Switzerland, the UK, and the US [3]. - It notes that all countries, except Brazil and the UK, achieved positive asset returns in Q2 2024 [6]. Investment Returns and Liability Growth - Investment returns for Q2 2024 showed positive results in all countries except Brazil and the UK, with the US achieving a return of 1.3% [6][12]. - The liability growth factor presented mixed trends, with Brazil and the Eurozone experiencing declines of -5.2% and -4.3% respectively [8]. Benchmark Discount Rates - The benchmark discount rates increased across all countries except Switzerland, with Brazil's rate reaching 10.76% in June 2024 [7][10]. - The report highlights the impact of interest accumulation on reducing liabilities, contributing to the overall pension index increase [10][18]. Overall Pension Index Movement - The overall pension index increased by 4.7% in Q2 2024, driven by the combined effects of asset performance and liability changes [11][18]. - The report indicates that the pension index reflects the ongoing adjustments in response to market conditions and financial assumptions [26].

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The WTW Research Network emphasizes the importance of applying scientific research to support risk management across various industries, focusing on interconnected risks and the need for organizational resilience [5][6][8] - The report identifies key areas of concern including climate change, geopolitical risks, technological vulnerabilities, and supply chain disruptions, highlighting the necessity for proactive risk management strategies [5][6][8] Specialized Industry Approach to Risk - The aerospace industry faces challenges such as decarbonization, digital transformation, and geopolitical tensions, necessitating a comprehensive understanding of these changes [57][58] - Financial institutions are leveraging AI and other tools to navigate a volatile economic environment while addressing risks like geopolitical instability and modeling assumptions [61][62] - The marine sector relies on effective risk management due to its critical role in global trade, with tools like the Ports and Terminal Risk Index aiding in resilience assessment [64][65] - The energy sector is undergoing transformation with emerging risks reshaping the landscape, emphasizing the need for strategic decision-making [67][68] - Real estate and hospitality sectors are navigating economic uncertainty and regulatory changes, requiring insights into emerging risks and climate hazards [71][72] - Retail and distribution are exploring trends and strategic issues that could impact success, focusing on emerging risks and supply chain complexities [74][75] - Technology and telecommunications are at the forefront of innovation, facing unique risks associated with advancements like AI and digital twins [77][78] Emerging Risks - The report highlights the need for organizations to prepare for a wider array of interconnected risks, including climate change, geopolitical tensions, and technological disruptions [84][85] - The Emerging Risks Hub connects WTW with insights from risk management research to assist clients in identifying and mitigating emerging risks [84][85] - The focus on gray zone aggression and its implications for businesses and infrastructure is emphasized, alongside the need for understanding resource scarcity and climate fragility [94][95] Technology Overview - The reliance on technology has increased, with a focus on AI and machine learning, necessitating a deeper understanding of associated risks and governance standards [90][91] - The report discusses the importance of digital twins in enhancing risk management and understanding cybersecurity issues within the maritime industry [90][91]

Surveying commercial insurance Pricing and profitability 2023 Q4 Update wtwco.com Now more than ever, price monitoring is key How are prices affected by changes in investment income? What is really happening to underwriting results? How does pricing compare to industry? How are loss costs changing? Economic Uncertainty wtwco.com Most of the lines continued to have moderate to significant rate increases in Q4 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 2021-2 2021-3 2021-4 2022-1 2022-2 2022-3 2022-4 2023-1 2023-2 2023-3 ...